Editing Span of control (section)

==Theoretical considerations==
The first to develop a more general theory of management was [[Henry Fayol]], who had gathered empirical experience during his time as general manager of a coal and steel company, the Commentary-Fourchambault Company. He was the first to add a managerial perspective to the problem of organizational governance. The rationale for defining a strict hierarchy of communication channels is found in the need for [[vertical integration]] of activities, imposed by management's need for control and information.

However, exercising control over activities performed by subordinates and monitoring their communication would inflict [[information overload]] to the nodes at the upper hierarchical levels, since all communication to other branches of the organizational structure would be routed through them. In addition, a larger number of subordinates also requires [[supervisor]]s to monitor a high number of [[social interaction|interactions]] below their own level; information overload and span of control are positively correlated.

Graicunas ([[Luther Gulick (social scientist)|Gulick]] and [[Lyndall Urwick|Urwick]], 1937) distinguished three types of interactions – direct single relationships, cross-relationships, and direct group relationships – each of them contributing to the total amount of interactions within the organization. According to Graicunas, the number of possible interactions can be computed in the following way. Let n be the number of subordinates reporting to a supervisor. Then, the number of relationships of direct single type the supervisor could possibly engage into is

: <math>n.</math>

The number of interactions between subordinates (cross relationships) that the supervisor has to monitor is

: <math>n (n - 1)</math>

and the number of direct group relationships is

: <math>n (2^n / 2 - 1)</math>

The sum of these three types of interactions is the number of potential relationships of a supervisor. Graicunas showed with these formulas that each additional subordinate increases the number of potential interactions significantly. It appears natural that no organization can afford to maintain a control structure of a dimension being required for implementing a scalar chain under the [[unity of command]] condition. Therefore, other mechanisms had to be found for dealing with the dilemma of maintaining managerial control, while keeping cost and time at a reasonable level, thus making the span of control a critical figure for the organization. Consequently, for a long time, finding the optimum span of control has been a major challenge to organization design. As [[Kenneth D. Mackenzie|Mackenzie]] (1978, p 121) describes it:
<blockquote>
”One could argue that with larger spans, the costs of supervision would tend to be reduced, because a smaller percentage of the members of the organization are supervisors. On the other hand, if the span of control is too large, the supervisor may not have the capacity to supervise effectively such large numbers of immediate subordinates. Thus, there is a possible trade-off to be made in an attempt to balance these possibly opposing tendencies.”
</blockquote>

Fayol proposed that subordinate employees should be allowed to communicate directly with each other, given that their superiors had agreed upon this procedure. This principle became known as "Fayol's Bridge."

The use of Fayol’s Bridge resulted in a number of other aspects needing to be taken into consideration. In order to put this system to work, [[Frederick Winslow Taylor|Taylor]]’s functional foremanship has to be abandoned, and unity of command needs to be established. At the same time, decision power is distributed to individuals on lower levels in the organization, and only decisions that exceed the pre-defined decision scope of an employee are referred upwards. This, in turn, strengthens the co-equality of authority and responsibility. Since a Fayol Bridge is not limited to a certain functional area within the organization, but can span over functional boundaries, e.g. from purchasing to manufacturing, it can be considered as a first attempt to create a [[horizontal integration]] of related activities under a certain level of [[organizational self-management|self-management]], an early [[business process]].

Mackenzie and others (Massie 1965, Pugh et al., 1972) also noted that there is no generally applicable optimum span of control. There are instead several factors influencing the balance between the desired level of control and the manageability of the organization.

Firstly, it depends on the capabilities of the organizational members, managers and workers. It was assumed, that no manager would be capable of supervising more than 5-6 direct subordinates. However, this conclusion built on the assumption that the superior must actively monitor the work of all subordinates. Later on, this statement was diversified when [[Ralph C. Davis|Davis]] (1951) divided managerial work into two categories, one requiring the attention to physical work, the other one requiring mental activity. Depending on the type of supervision, a span of 3-8 subordinates for managers at higher levels was considered adequate, while first level supervisors, i.e. those supervising shop floor personnel could have up to 30 subordinates.

The neoclassical theorists have developed a different solution. They assumed that a considerable amount of decisions could be delegated to organizational members at lower organizational levels. This solution would be equivalent to the application of Fayol's Bridge combined with the principle of employee initiative that he proposed. As a result, the need for supervision would be reduced from direct control to exception handling. According to this assumption, they considered the opportunity of having access to a supervising manager would be sufficient to satisfy the need for control in standard situations. [[Peter Drucker]]{{sfn | Drucker | 1954}} refers to this principle as the span of managerial responsibility.